Australian police closed off the area around the Chinese consulate in Sydney after a robbery suspect fled into the grounds.
Heavily armed officers raced to the scene as the situation turned into a six-hour siege.
Police said a number of shots were fired during the stand-off.
The drama unfolded on Friday and details at this stage are scant.
Local television reports said the siege began after an attempted robbery at a nearby bar went wrong.
The reports said one suspect was arrested at the bar.
The other fled into the grounds of the consulate in a lane behind it.
That man was later reported to have been arrested and taken to hospital.
Paul Chapman, Reuters